- The location of the Industries is the key to the balanced regional growth of our nation. Industrial location is the key component of inclusive growth as envisaged by the Government
The factors favouring Textile Industrial Cluster Development in Tamil Nadu
Integrated transportation and communication facilities
- Speedy and efficient transport facilities, integrated with all modes of transportation, to carry raw materials to the factory and to move finished goods to the market are essential for the development of the cluster.
- Proper Road infrastructure development in the major reason.
- Similarly, Delhi-Mumbai industrial corridor is being developed with the facility of an integrated transportation system and a dedicated freight corridor
Access to Market
- The existence of a market for manufactured goods is the most important factor in the location of industries.
- ‘Market’ means people who have a demand for these goods and also have the purchasing power.
Access to the reliable power supply
- Industries need a continuous and cheap sources of power to be competitive both domestically and internationally.
Access to Raw Material
- The raw material used by industries should be cheap and easy to transport.
- Industries based on cheap, bulky and weight-losing material (ores) are located close to the sources of raw materials such as steel, sugar, and cement industries.
Access to Agglomeration Economies
- Many industries benefit from nearness to leading industries and other industries.
- These benefits are termed as agglomeration economies.
- Savings are derived from the linkages which exist between different industries.
Optimum location
- A central theme in the development of the industry is the concept of optimum location which gives the best profits.
- The best location is therefore where costs are lowest and revenues are highest.
Least Cost
- There are two general classes of costs: transportation cost, involves in the collection of raw materials and the distribution of finished products; and processing costs, such as labour, power, capital and services.